An automated business-rule capability with algorithm-based problem detection and exception-based reporting can monitor and highlight those exceptions likely to result in late pays, chargebacks or
unearned discounts.
Moreover, the dissent refused to accept the promissory note as a mere collection mechanism for
unearned discounts. It found that a liquidated damages clause in the supply agreement provided a remedy for its own breach, which demonstrated that the repayment obligation under the promissory note remained independent of (albeit linked to) the supply agreement.
* Unauthorized or
unearned discounts given on sales orders,
Let's begin with the principle, that what we might call indirect or unintentional promotional funding (slotting allowances, abuse of unsaleables policies,
unearned discounts, deductions and all the other dark demons of the 1980s and 1990s), which ought not to be the basis of profitability.
Do
unearned discounts age out in the reporting of DSO?
If left unchecked, your company could be losing millions of dollars a year with these
unearned discounts.
* Coding, tracking and rolling up deductions or
unearned discounts is impossible.